A business owned by individuals called shareholders or stockholders.
corporation
This type of business is commonly referred to as a corporation. In a corporation, ownership is divided into shares of stock which can be bought and sold by individuals or institutional investors. Shareholders elect a board of directors who make major decisions for the company and hire executives to manage day-to-day operations.
One key advantage of a corporation is that it offers limited liability protection for shareholders. This means that shareholders are not personally liable for the company’s debts or legal issues. Additionally, corporations have the ability to raise large amounts of capital by selling stock to investors.
However, corporations also have certain disadvantages. They are subject to double taxation, meaning that the company is taxed on its profits and shareholders are also taxed on the dividends they receive. Additionally, corporations are subject to a high level of regulation and oversight, which can be costly and time-consuming. Overall, corporations are a popular choice for businesses that plan to grow and seek outside investment, but they may not be the best option for every business.
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